A £148 MILLION supertram scheme could be back on track next week if a government inquiry gives it the go-ahead.

Plans for the light rapid transport (LRT) system linking Fareham and Gosport with Portsmouth were put on hold after a public inquiry was called.

But the result of the government inquiry is expected next week, with residents divided over whether permission would be a benefit or a headache.

The proposed LRT will have 16 stops and a tunnel under Ports-mouth Harbour, with the potential to extend it to Southampton.

Council leader Peter Edgar said he had been involved in the project from the start and bel-ieved it would help relieve traffic problems in the town.

"I desperately hope the government will give it an unconditional go-ahead," he said.

"This, along with residential planning permission and the creation of over 1,000 jobs in Gosport, will do a great deal to lessen the problems on the A32."

But people living along the planned route are less sure of the benefits, fearing the scheme will affect the value of their homes.

Peter Chegwyn, county councillor for Gosport Leesland, said the 14.3km route passed through his ward, where people had mixed feelings.

"Most people will welcome it but people living directly along the route are very concerned about how it will affect them.

"At least a decision will clarify the situation.

"If it goes ahead I would like to see a compensation package for people affected by the noise and inconvenience of construction, let alone the operation of it."

He warned that if the scheme was turned down, local councils would have wasted millions of pounds trying to get the radical scheme pushed through.

An announcement about the scheme is expected from John Prescott on Tuesday.